(Alliance News) - Octopus Renewables Infrastructure Trust PLC said on Thursday it will invest in a green hydrogen joint venture.
The London-based investment firm, focused on electricity generation assets, said it will invest up to GBP5.0 million into Hyro Energy Ltd.
Hyro is a new joint venture between Octopus, Sky and Renewable Energy Systems, established to develop green hydrogen electrolysis projects for industrial use in the UK.
Octopus and Sky are investing on the same terms and will each own 25% of Hyro. The firms will also have the exclusive rights to offer further development funding beyond the initial GBP5.0 million agreement.
Octopus said Hyro intend to develop around 700 megawatts of green hydrogen electrolyser capacity by 2030. Its strategy is aligned with the UK's plans to reduce carbon emissions.
Hyro's three initial pipeline projects, which total around 30MW of electrolyser capacity have been shortlisted by the UK government for the first round of allocations to receive ongoing revenue support under the hydrogen production business model. The Department for Energy Security & Net Zero will award contracts to successful projects in the final quarter of 2023.
Chair of Octopus Phil Austin said: "This partnership with experienced renewables company Renewable Energy Systems is our first investment into the green hydrogen sector - an exciting, vital and fast-growing part of the net zero economy. It adds further technological diversification and provides the potential to significantly contribute to future decarbonisation and the reduction of greenhouse gases in hard-to-electrify industries where green hydrogen will be the fuel of the future. The investment marks Orit's fourth developer investment and provides even more value for the future expansion of our proprietary pipeline."
Shares were up 1.1% at 99.17 pence in London on Thursday morning.
By Sabrina Penty; Alliance News reporter
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Octopus Energy (ORIT)